Melting Ice, Rising Tensions: China's Arctic Presence and Implications for the United States

Abstract

The Arctic Ocean Region is experiencing a transformation and is remoulding abruptly from an ice-covered region to an economic zone, influenced by the rising Global temperatures. This transformation has unplugged new avenues for maritime activities as well as intensified the Geopolitical dynamics. This study investigates and analyzes the rising tensions prompted by the increasing presence and activities of China in the Arctic region and the potential implications for the USA. Adopting a Qualitative approach, this research analyzes and examines the PRC's involvement and activities in the region along with the Arctic Policies of the PRC and the United States. The study explores the complex interplay of interests and motives of both powers and potential implications and challenges arising from the growing Chinese presence of the USA in the strategically important region.

Full text

Global Foreign Policies Review (GFPR)
p- ISSN: 2788-502X e-ISSN: 2788-5038 URL: http://dx.doi.org/10.31703/gfpr.2023(VI-IV).05
Melting Ice, Rising Tensions: China’s Arctic Presence and
Implications for the United States
Virda Azam * Sajid Iqbal
†
Corresponding Author: Sajid Iqbal (Assistant Professor, Department of International Relations, National
University of Modern Languages (NUML), Islamabad, Pakistan. Email: Sajidiqbal@numl.edu.pk)
Vol. VI, No. IV (Fall 2023) Pages: 53 – 66 DOI: 10.31703/gfpr.2023(VI-IV).05
Citation: Azam, V., & Iqbal, S. (2023). Melting Ice, Rising Tensions: China’s Arctic Presence and Implications
for the United States. Global Foreign Policies Review, VI(IV), 53-66.
https://doi.org/10.31703/gfpr.2023(VI-IV).05
Abstract:
The Arctic Ocean Region is experiencing a transformation and is remoulding abruptly from an
ice-covered region to an economic zone, influenced by the rising Global temperatures. This transformation
has unplugged new avenues for maritime activities as well as intensified the Geopolitical dynamics. This
study investigates and analyzes the rising tensions prompted by the increasing presence and activities of
China in the Arctic region and the potential implications for the USA. Adopting a Qualitative approach,
this research analyzes and examines the PRC's involvement and activities in the region along with the Arctic
Policies of the PRC and the United States. The study explores the complex interplay of interests and motives
of both powers and potential implications and challenges arising from the growing Chinese presence of the
USA in the strategically important region.
Key Words:
Melting Ice, Arctic Ocean, China, US Global Temperature
Introduction
The Arctic Ocean has become another arena
for the power struggle between the People's
Republic of China (PRC) and the United
States of America. As the Arctic Ocean is
remoulding abruptly from an ice-covered
region to an economic zone, influenced by
rising Global temperatures. This
transformation has unplugged new avenues
for maritime activities including resource
extraction and shipping routes. It is a
resource-rich region which remained
unaltered by the other states while this
transformation has gathered alarming
global attention including from the PRC and
*
Undergraduate, Department of International Relations, National University of Modern Languages
(NUML), Islamabad, Pakistan.
†
Assistant Professor, Department of International Relations, National University of Modern
Languages (NUML), Islamabad, Pakistan.
the USA. Amongst the emerging actors in
the Arctic region, the increasing presence
and involvement of China has become the
Centre of attention of international
discourse.
Previous research primarily focused on
the security implications of the PRC's Arctic
presence on the USA, moreover, these
studies somehow overlooked the probable
motives behind the presence and
involvement of the PRC in the Arctic Ocean,
whether it intends to override the USA or
pursue economic and strategic objectives in
the Arctic Ocean region and how PRC's
engagement in the Arctic has the

Virda Azam and Sajid Iqbal
54 Global Foreign Policies Review (GFPR)
potentiality to threaten the economic
interests of the USA.
This research paper aims to address the
interests of the PRC in the Arctic Ocean and
how it could threaten the economic
objectives and interests of the USA. China,
having one of the largest economies in the
world is present in the Arctic Ocean to take
benefit of the resources and shorter trade
routes. China is expanding its involvement
and influence in the Arctic Ocean
increasingly motivated by the economic and
strategic goals in the region, which has the
potential to threaten the economic interests
and relations among the USA and the Arctic
states. This study intends to address the
Chinese activities in the Arctic Ocean, are
those activities offensive? And how do the
Chinese involvement and investment in the
Arctic infrastructure and resources threaten
the economic interests of the USA?
This research has been carried out over a
time period of three months, hindering the
in-depth analysis that could be
accomplished. Budgetary limitations have
also influenced the level of the data
acquisition and analysis and there can be
potential bias in the official statements. This
study could serve as a basis for future
research in the concerned field and acts as a
valuable addition to the literature for
International Relations students and anyone
interested in Great power politics. The
Qualitative approach has been employed for
the data collection, and analysis and to
develop significant observations and
conclusions.
The overall structure of the paper includes
a brief introduction, Research problem,
Objective of the Research, theoretical
Framework, Literature review and the Gaps
in the literature, with a qualitative approach
to analyze the data that highlights the PRC’s
Interests in the Arctic Ocean Region and
implications of its presence on the United
States. There is still room for further
research on the topic.
Problem Statement
China and the USA have been engaged in a
power struggle for several years, one of the
regions where this power struggle is
cropping up is the Arctic Ocean Region
(Nikulin, 2021). China has been trying to set
up a toehold in the Arctic region, which the
USA perceive as a "Destabilizing Force"
(Irving, 2022). The Arctic Ocean, an
emerging Energy Province (A Council, 2009)
has gathered alarming global attention,
including from China which is the second-
largest economy and largest Energy
consumer globally. PRC has made heavy
investments in the region including in the
major Liquified Natural Gas (LNG) projects
on the Russian coast of the Arctic Ocean,
including projects like Arctic LNG 2 and
Yamal LNG (Wang, 2023). This paper
intends to highlight the motives behind the
Chinese involvement and presence in the
Arctic which is characterized by
investments in Infrastructure and resource
exploration and how it has the potential to
threaten the economic interests of the USA
and its relations with the Arctic states.
Objectives
1. This paper tends to analyze and
provide a thorough understanding of
the motives behind the PRC’s
presence and involvement in the
Arctic Ocean region and its potential
implications for the United States.
2. This study intends to shed light on the
economic and strategic interests of the
PRC in the Arctic Ocean Region.
3. It also investigates the effects of the
PRC's activities and involvement in
the Arctic on the Economic interests of
the United States in the region.

Melting Ice, Rising Tensions: China’s Arctic Presence and Implications for the United States
Vol. VI, No. IV (Fall 2023) 55
Significance
This study could serve as a basis for future
research in the concerned field and acts as a
valuable addition to the literature for
International Relations students and anyone
interested in the Great power politics, As the
Arctic Ocean is melting drastically,
becoming more accessible for Natural
Resources, and paving the way for new
shorter trade routes.
Research Questions
The questions this study intends to address
are:
1. What are the motives behind China's
involvement in the Arctic Ocean
Region?
2. How is the PRC pursuing its Arctic
Policy? Can the PRC's engagement in
the region incite conflict between the
USA and China?
3. How do the PRC's presence and
investments in the infrastructure and
resources of the Arctic can influence
the economic interests of the United
States?
Methodology
A qualitative approach has been used to
collect and analyze the data from White
House and Chinese websites, scholarly
articles, Policy documents and official
statements, to investigate the PRC's
activities in the Arctic Ocean region and its
possible implications for the United States.
Additionally, reputable news sources have
also been used to gather information on the
concerned topic. The research design is
Exploratory, aiming to uncover the policy
objectives of China and potential
implications for the United States.
Theoretical Framework
Geo-Economics
China is advancing its engagement in the
Arctic Ocean Region by investing in
infrastructure, resource exploration and
trade routes. That has become a Centre of
discussion globally. To analyze the PRC's
presence, engagement, and investments in
the Arctic Ocean and to analyze the interests
and goals of the PRC in the region Luttwak’s
concept of Geo-Economics has been applied.
The term "Geo-economics" was coined by
Strategic theorist and consultant Edward
Luttwak in his 1993 book "The Endangered
American Dream: How to Stop the United
States from Becoming a Third World
Country and How to Win the Geo-economic
Struggle for Industrial Supremacy." It helps
to analyze and understand the intersection
of economics and geopolitics in
international relations. Geoeconomics
provides a lens through which we can
examine how economic factors influence
and shape geopolitical outcomes.
According to the Geo-Economics, the
PRC's presence, and investments in the
infrastructure in the Arctic Ocean region can
be seen through the lens of the pursuit of
resources as the PRC is among the world's
largest economies. So, we can say China is
advancing its involvement and presence in
the Arctic Ocean Region to take complete
benefit from the key geographical region for
its economic objectives. Furthermore, PRC's
investments in the infrastructure in the
Arctic Ocean, for instance, Icebreakers and
Research stations, reflect China's efforts to
extract resources and acquire access to the
new Shipping routes, the Northern Sea
Route (NSR), which can significantly cut
shipping distances and costs. China's
investments in resource extraction and
infrastructure projects are in line with its
larger economic objectives of securing
resources and improving trade connections.
Literature Review
The Arctic Ocean is melting and undergoing
changes leading towards the opening of new
trade or navigation routes that were

Virda Azam and Sajid Iqbal
56 Global Foreign Policies Review (GFPR)
previously inaccessible. These
developments are attracting the attention of
both the PRC and the United States (Smith,
2019). Other than the Arctic States, non-
Arctic members and international
organizations are showing an increasing
interest in the Arctic Ocean Region argued
Nong Hong (2018). He argued that the
Chinese involvement and engagement in
the Arctic region has been low profile and
talked about China’s interests to promote
bilateral diplomacy in the region (Hong,
2018).
Lim and Kong Soon (2018), delved into the
motives behind the PRC’s presence in the
Arctic Ocean Region and argued that China
is interested in a variety of sectors for
instance, the exploration of natural
resources and investment in the Arctic
infrastructure (Lim, 2020). David Curtis
Wright argues that China shifted its focus
towards the Arctic Ocean Region mainly for
the resources and Trade routes (Wright,
2013).
China sees itself as a Polar Power and aims
to become a Great Polar Power having the
infrastructure comparable to Russia and the
United States of America, argued by Patrik
Andersson (2021). To become a polar power,
it should have to be dominant in the polar
region (Andersson, 2021). Dr. Wishnick
argues that in the Arctic PRC is playing a
long game and adroitly establishing
relationships with the Arctic states to ensure
that China will perform a significant role in
the Arctic affairs in the long run. She further
argued that giving the PRC an observer
status in the Arctic Council is controversial
and its interest and goals in the region and
Arctic Council have increased the concerns
and questions for the world including the
USA. One concern is that the incorporation
of the non-arctic great powers would lead
towards the militarization of the Arctic
Ocean Region (Wishnick, 2017).
Argues that when China becomes powerful
it will attempt to change the existing global
order and that the increased activities of the
PRC in the Arctic Ocean will have the
capacity to challenge the interests and
objectives of other active countries in the
region (Brady, 2017).
F. Stuart Chapin III and Shauna
BurnSilver (2017), in their paper, argued that
the Arctic Ocean is home to a number of
indigenous communities and have
discussed the implications of Chinese
activities on these communities (Andrey N.
Petrov, 2017). They talked about the
environmental aspects of Chinese activities
and engagement in the Arctic Ocean Region.
Literature Gap
Previous literature talked about the rise of
PRC and its interests in the Arctic while
some authors have addressed the
implications of China's presence for Canada.
They talked about the environmental
aspects of the Melting Arctic Ocean and
Chinese activities and declared the PRC's
presence and activities aggressive to become
the Great polar power (Brady, 2017).
However, they somehow neglected to
examine the PRC's presence and activities in
the region through the lens of Geo-
Economics and how its engagement in the
region could threaten the Economic interests
of the United States, as previous articles
mostly focused on the Security implications
of the USA.
Organization of the Study
1. Transformation of the Arctic Ocean
Region
2. Arctic Policies of China and the USA
3. Motives behind the PRC’s presence in
the Arctic
4. PRC’s Activities in the Arctic Ocean
Region
5. Economic Implications for the USA

Melting Ice, Rising Tensions: China’s Arctic Presence and Implications for the United States
Vol. VI, No. IV (Fall 2023) 57
Transformation of the Arctic Ocean
Region
The Arctic is one of the major oceans on the
earth, which is in the northernmost part of
the world. It is an ice-covered region that is
transforming abruptly over the decades due
to the rising global temperatures, into an ice-
free region. The Arctic Council (AC) was
formed in 1996 as a forum for dialogue and
cooperation between the Arctic Eight and
indigenous groups.
One of the Arctic Council's (AC) working
groups, the Arctic Monitoring and
Assessment Program (AMAP) reported that
the Arctic region has warmed and melted
three times as quickly as the rest of the
planet over the past 50 years. Since 1979 till
2019, the ice in the Arctic Sea has decreased
by 44%, this shows the rapid transformation
of the Arctic Ocean region and there is a
concern that the ice in the Arctic Ocean will
mostly disappear in summers possibly as
early as in the late 2030s (Smieszek, 2021).
With the melting ice, the conditions in the
region are changing, providing avenues for
the utilization of sea routes for trade
purposes and exploitation of natural
resources, as the Arctic Ocean region is
home to a variety of natural resources. This
is the age of Economic globalization and
regional integration; the rapid
transformation of the region has attracted
global attention including both Arctic and
Non-Arctic states.
Arctic Policy of the United States
United States released its Arctic policy in
October 2022 after nearly a decade (FACT
SHEET: The United States National Strategy
for the Arctic Region, 2022), while the last
Arctic policy was released in 2013. This
national strategy of the USA on the Arctic
region talks about the urgency to address
the transnational issue of climate change,
preservation of the environment and
investments for the region's sustainable
development. This strategy provides a
framework and approach for the
government of the US to tackle the emerging
global issues and opportunities in the
region. It gave Four pillars, that deal with
Security, Sustainable Economic
Development, Climate change and
Environmental protection, and International
Cooperation and Governance, along with
the five principles. These principles are
Consulting, Coordinating and Managing
with Alaskan tribes and Communities,
strengthening relations with allies and
partners, strategizing for long duration
Investments, Strengthening, and developing
innovative ideas and Coalitions, while
committing to a government and evidence-
based approach. In the National Strategy for
the Arctic, the USA has also briefly
explained the transformation of the Arctic
Ocean into a more accessible region, they
argued that the region is attracting global
attention including China. They claimed
that the PRC is enhancing its influence in the
region through an extended array of
Scientific, diplomatic, economic, and
military initiatives, underlining its ambition
for a relevant role in shaping regional
governance. In the past decade, China has
increased its investments twofold, while
focusing on critical mineral extractions and
expanding its scientific research, conducting
dual-use research with potential military or
intelligence applications in the Arctic region
it also argues that China has sent its first-
ever naval vessels to the region.
The first pillar of the National Strategy
deals with Security, in which the USA
argued that they are committed to the
protection of its people, their territory and
allies, from the protection of the national
defence to the safe Scientific and
Commercial activities and alleviating the
threat of militarization or unintended

Virda Azam and Sajid Iqbal
58 Global Foreign Policies Review (GFPR)
escalation. It argued that the USA will
maintain and advance its military presence
in the region to defend against the Global
military, power projection and deterrence
goals and to deter any kind of aggressive
action. The US national strategy on the
Arctic argues that with the transformation of
the region, the Arctic is becoming more
accessible and strategic competition is
intensifying, the United States will maintain
its leadership role in the Arctic Ocean
region.
Arctic Policy of China
PRC perceives itself as a Near-Arctic state,
as China is the nearest continental state to
the Arctic, and it is directly impacted by any
change in the conditions of the Arctic region.
China was granted an Observer standing in
the Arctic Council in 2013 in the Kiruna
Ministerial Meeting of the council, after
declining China's request for three times in
2006, 2009 and 2011. In 2007 PRC was given
an Ad-hoc Observer status while its request
was under consideration (Lim, 2020).
PRC published its Arctic White paper for
the first time in 2018 (China’s Arctic Policy,
2018), in which China highlights its four
main policy goals on the Arctic and these
goals are 'Understanding', 'Developing',
'Protecting' the Arctic region and
'Participating' in the governance of the
Arctic Ocean Region. The key policies
highlighted in the paper are, that China aims
to enhance the capabilities of Scientific
Research to get an in-depth knowledge of
the Arctic science and natural laws causing
the Arctic to change and to establish an
environment for responsible development.
Furthermore, China aims to protect the
Arctic by addressing climate change
actively, safeguarding the natural
environment and respecting the indigenous
communities. Developing the Arctic for the
common benefit, China emphasizes
Technological innovation, resource
utilization, protection of the environment,
and the development of shipping routes.
PRC also commits to engage in Arctic
governance within the established laws and
frameworks, emphasizing the principles of
cooperation, respect, sustainability, and
common benefit. In the White paper, it
highlights four principles that are guiding
its involvement and engagement in the
Arctic Ocean, 'Respect', 'Cooperation', 'Win-
Win result' and 'Sustainability'. PRC
understands that Arctic affairs are complex
and multi-faceted so it requires cooperation
from the Arctic and other states, and then
the outcome will be mutual benefit and
Sustainability, also China identifies the
major challenges such as climate change and
global warming and shows its intention to
collectively work on addressing these
challenges.
In the paper, China also elaborated on its
participation in the Arctic to legitimize its
interests, it shows that since 1925 China
started participating in the region by signing
the Spitsbergen Treaty now named as
Svalbard Treaty, which grants its signatories
a permit to use the archipelago of
Spitsbergen for commercial purposes and
scientific research.
At the third Arctic Circle Assembly in
October 2015, the Foreign Minister of the
PRC Wang Yi and Vice Foreign Minister
Zhang Ming outlined the Basic principles of
the PRC's Arctic policy. These principles are
'discovering and understanding the Arctic',
'safeguarding and judiciously utilizing the
Arctic region', 'upholding the rights of the
Indigenous communities and Arctic
countries', 'recognizing the rights and
interests of non-Arctic countries and
international community', 'forming a
diversified framework for Arctic
cooperation for common good' and
'sustaining the Arctic governance system
based on prevailing international
framework and laws’ and we can clearly see

Melting Ice, Rising Tensions: China’s Arctic Presence and Implications for the United States
Vol. VI, No. IV (Fall 2023) 59
these principles reflecting in the White
paper published in 2018.
The white paper on PRC's Arctic policy
clearly draws a line between the Arctic
waters that are under the sovereignty of the
Arctic Eight and waters that are declared as
the Global commons.
"The Arctic's coastal and offshore land
areas comprise a space of approximately
Eight million square kilometres and the
United States, Denmark, Canada, Iceland,
Finland, Russia, Norway, and Sweden have
sovereignty over these areas. Over twelve
million square kilometres make up the
Arctic Ocean, where the Arctic and other
states have shared rights and interests under
international laws and frameworks. Internal
waters, territorial seas, contiguous zones,
EEZ and continental shelf in the Arctic
Ocean Region fall under the sovereignty of
these coastal countries meanwhile a portion
of the Arctic Ocean Region is incorporated
into the High seas."
This shows that under the UNCLOS China
has the right to use the Arctic waters for
commercial purposes and Scientific
research. As for governance, China relies on
international laws and frameworks.
Motives behind the PRC’s presence in
the Arctic
China clarified its position on the Arctic in
its first-ever published Arctic White Paper
that explains the PRC's policies and
strategies on the Arctic Ocean region, it
perceives itself as a Near Arctic state, that is
near the Arctic Circle. China self-defines its
identity and sees itself as a Global power
that has a stewardship role in the Arctic
region. In 2018 while briefing the Arctic
White Paper, the then Vice Minister of
Foreign Affairs said that "China would
neither be overstepping nor would be
absent from the region.”
By saying "not overstepping", China
acknowledges itself as a non-arctic state that
will not interfere in the affairs of the and
among the arctic states and in the region.
However, China will execute and manage its
activities in the region in accordance with
international laws and frameworks. The
above-mentioned statement shows the
PRC's commitment to engage in the region
and promote cooperation, this shows that
China would engage in the activities in the
region but would also stay neutral on
matters of contention between the Arctic
states. After China received the Observer
status in the Arctic Council in 2013, PRC's
activities in the Arctic region increased
greatly in three key areas, Economics,
Science and Governance (Chen, 2023).
China keeps an indirect and low profile in
the Arctic and maintains a research-oriented
approach in the region (Sun, 2018). China
constantly cites and justifies its increasing
participation as the need for increased
knowledge and a scientific approach to
climate change and global warming. PRC's
approach and activities in the region mainly
rely on soft issues like economic cooperation
and scientific research. It maintains
cooperative relationships with the Arctic
states on all levels, bilateral, regional, and
multilateral levels.
“Even though the Arctic's environment is
vulnerable, it is rich in resources. PRC
encourages its businesses to take an active
part in international cooperation for the
discovery and use of resources present in the
Arctic, by ensuring the best possible use of
their benefits in technology, capital, and
local markets. Additionally, the PRC
continues to advocate for the conservation
and responsible use of the region. According
to the PRC, any exploration and use of the
Arctic must adhere to international laws and
treaties like UNCLOS and the Spitsbergen
treaty, along with the laws of the Arctic
states and should also proceed in a

Virda Azam and Sajid Iqbal
60 Global Foreign Policies Review (GFPR)
sustainable manner, provided that the
region's indigenous people's interests, as
well as concerns, are taken into account and
the environment is effectively protected."
The above-mentioned paragraph taken
from the PRC's White Paper on the Arctic
policy indicates its clear intention to use the
Arctic region for merely economic and
research purposes, abiding by the
international frameworks, exploring, and
utilizing the resources and the region in a
sustainable way. We can clearly assess the
motivations for the PRC's participation and
engagement in the region from the White
Paper as the Blueprint. By evaluating the
PRC's policy and strategy for the Arctic
Ocean region, we can see that the PRC is
increasing its involvement in the region for
economic and research purposes, not to
override the United States of America.
China's Arctic policy and strategy seem to be
guided more by opportunism than an
intention to challenge the sovereignty of the
Arctic countries (Lasserre, 2015).
PRC’s Activities in the Arctic Region
PRC's main objectives in the region are to
construct a transportation and logistics
network, advance polar Scientific research,
establish renewable energy systems,
develop mineral resources and hydrocarbon
energy and preserve ecological balance
(Tatiana Batova, 2019). China is actively
working to forge solid bilateral and
multilateral relations with the Arctic states
to enhance its interests in the region by
making huge investments in these states'
Arctic initiatives.
Natural Resources:
According to the United States Geological
Service Study (USGS) report published in
2008, the Arctic Ocean region contains
approximately 30% of the global natural gas
reserves and has yet to discover around 13%
of the global oil reserves. As the Arctic is rich
in minerals and gas and oil reserves, the
PRC's growing and increased demand and
need for gas and oil are forcing the state to
look towards the Arctic as a source for its
imports (Hsiung, 2016). Securing access to
natural resources for instance gas, oil, and
mineral resources, is an objective mentioned
in the PRC's Arctic Policy published in 2018.
US Energy Information Administration
stated that since 2017 China has been among
the largest oil importing countries in the
world. From 2018 to 2020, Chinese
companies made several investments in
extracting the Arctic Resources and
developing the infrastructure projects.
China is largely advancing its interests in
exploring the natural resources, Arctic
shipping routes and supporting
Infrastructure via bilateral agreements and
investments. As a large portion of the
region's natural resources, such as gas and
oil reserves, are found inside the Exclusive
Economic Zones (EEZ) and territories of the
Arctic states. So, the huge investments of the
Chinese companies are appealing to those
Arctic countries who find it difficult to
develop certain underdeveloped regions.
One of the ways to secure access to these
natural resources is Economic Incentives.
The activities of the Chinese businesses in
the Arctic are in conformity with China's
strategic goals (Holz, 2022). To understand
China's activities in this regard, we can take
the example of a Chinese State-owned
company, China Minmetals Group (MMG)
which is involved in the exploration, mining
and processing of several metals and
minerals. This company is involved in the
mining project in the Canadian Arctic, the
Izok Corridor Project. This project focuses
on the extraction and mining of the Copper
and Zinc resources in the Izok and High
Lakes. An agreement was signed between
Russia's Baltic Chemical Complex and
China National Chemical Engineering
company for the construction of a Chemical

Melting Ice, Rising Tensions: China’s Arctic Presence and Implications for the United States
Vol. VI, No. IV (Fall 2023) 61
plan and natural gas processing facility on
the Russian shores of the Gulf of Finland.
The China National Chemical Engineering
company stated that it will continue to reach
out to the Russian market and will advance
the construction of the BRI towards high-
quality development (Xia, 2019). China has
also signed different investment agreements
with Iceland and Switzerland, for the
development of ports and other
infrastructure (Adam Stepien, 2020). China
has made almost 1.2 billion dollars of
investment in Iceland and around 2 billion
dollars in Greenland between 2012 to 2017,
for the development of transportation
infrastructure.
Investments in Ships and Aircraft
China has also made investments in Ships
and aircraft in order to access the Arctic
region and to advance its engagement in the
region. China bought an ice breaker from
Ukraine in 1993 and later was equipped to
meet China's demands of Arctic exploration
and research, which was named "Xue Long”
means Snow Dragon. Since then, Xue Long
has been a crucial part of China's Arctic
missions and Scientific research. China also
purchased Xueying 601, a fixed-wing cargo
aircraft built by Basler BT-67, in 2015. The
logistics capacities of China in the Arctic
Ocean region have been enhanced by this
aircraft. These aircraft are important for
transporting supplies, labour, and
equipment to far-off Arctic areas. China
gave a Five-year plan from 2016 to 2020, in
which it focused on developing cutting-
edge ice breakers. It shows China's
dedication to improving its capacity to
navigate the Arctic Ocean, enhance
Scientific research and engage in
commercial activities in the Arctic.
Furthermore, in 2018 China initiated the
bidding process for the development of the
Nuclear-powered ice breaker domestically.
In comparison to conventionally powered
ice breakers, nuclear power ice breakers can
operate in tough ice-covered oceans for
longer durations. In 2019, China completed
the construction of Xue Long II, its first ever
domestically constructed ice breaker. This
shows China's commitment to explore the
Arctic and to utilize its resources and
shipping routes. In 2020, China gave another
five-year plan which spans from 2021 to
2025. In this five-year plan, China affirmed
its intention to increase the number of
icebreakers in its fleet. This affirms China's
goal of enhancing its capacity and
engagement in the Arctic Ocean Region,
which is consistent with its objectives in
Resource Exploration, Scientific research,
and the development of new Arctic shipping
and trading routes. Additionally, the
companies in China and Russia have also
started collaborating to co-manage a fleet of
ice-breaking vessels that are intended to
carry LNG through the Arctic Ocean Region.
The companies of both states have also
executed an agreement to start a
collaborative effort to oversee the fleet of ice-
breaking tankers, to enable the Northern Sea
Route (NSR) to swiftly establish a
commercially viable transportation gateway
bridging the Pacific and Atlantic Oceans
(Hand, 2019).
Arctic Shipping Routes
As the Arctic Ocean is becoming more
accessible, it is estimated that by 2030
around 5% of Global maritime traffic may be
directed to use shipping routes of the Arctic
Ocean (Eddy Bekkers, 2016). Following this
development, China aims to expand its Belt
and Road Initiative (BRI) to the Polar Silk
Road (PSR), which is an initiative and
strategy to develop shipping and trading
routes through the Arctic Ocean region,
which requires the navigability and safety of
the Northern Sea Route (NSR) to access the
trade routes and markets of Europe and
Asia (Tianming Gao, 2020). As China is a

Virda Azam and Sajid Iqbal
62 Global Foreign Policies Review (GFPR)
shipping power and among the top
shipowners worldwide, it aims to develop
more accessible and short routes from Asia
to Europe (Qiang Zhang, 2020). If compared
to the Suez Canal, which is the traditional
shipping route, Arctic routes save transit
time and energy costs (Zheng Wan, 2018).
The NSR connects Asia and Europe, it has a
total distance of around 13,000 kilometres
while the Suez Canal is 21,000 kilometres
long. This clearly shows the reduction in the
transit time from one month to almost two
weeks. China Ocean Shipping Company
(COSCO), which is among the biggest and
major shipping companies in China and the
world, launched the Cargo ship Yong Sheng
in 2013. It was the first ever commercial ship
of China that travelled the NSR from China
to Western Europe. COSCO is involved in
around 30% of the voyages along the NSR, it
has dispatched eighteen different vessels to
execute thirty-one NSR voyages between
2013 and 2019.
At the Second Belt and Road Forum for
International Cooperation which took place
in Beijing on April 25, 2019, President
Vladimir Putin communicated Russia's
interests to unite NSR with China's Silk
Road. The PRC is among the largest and
leading economies globally and the biggest
exporter of goods to the world, having a
total export value of $3.71 trillion in 2022
(World Bank, 2010), and the largest importer
of oil that greatly depends on the Suez Canal
for its imports. Developing and sustainable
utilization of the Arctic shipping routes has
been a clearly mentioned goal of the PRC in
the Arctic White Paper published by the
PRC. According to some analysts, it is
expected that the Northern Sea Route (NSR)
will be an ice-free zone by 2050 and this
transformation provides larger navigational
access to the major key players including
Russia and China. PRC aims to expand the
BRI to the Polar Silk Road (PSR), by
establishing a new trade route through the
Arctic Ocean Region, while this interest was
welcomed by Russia. After PRC published
its White paper on the Arctic the number of
NSR transits increased from 27 in 2018 to 37
in 2019 and then spiked to 62 in 2020. This
shows the increased Chinese navigation and
movement through the Northern Sea Route
(NSR) for commercial purposes. China
considers the Northern Sea Route (NSR) as a
feasible alternative to the Suez Canal, the
Strait of Malacca and the Panama Canal. The
study showed that the transportation of
commercial ships through the NSR saved
6,948 tons of fuel and reduced
transportation time. By using the Northern
Sea Route, the total volume of annual trade
between the PRC and Russia has spiked
from below 90 billion dollars to over 190
billion dollars from 2012 to 2022. It also
includes energy supplies to the PRC from
Russia, including 400,000 barrels of oil per
day in 2023 (Martins, 2023).
Though the infrastructure of NSR is
poorly developed, efforts are being made to
enhance the NSR. There have been
discussions to extract the raw resources in
the Komi Republic of Russia between the
China Railway Construction and China
Communication Construction. This includes
the possibility of building a new railroad
and deepwater ports to load ships for
shipment via the NSR.
China is participating actively in the
development and improvement of the
Northern Sea Route (NSR), as it not only
saves China from the Malacca Dilemma and
any obstacles of the Suez Canal but also
grants a safer and shorter route to access and
reach the markets of Europe.
Economic Implications for the United
States
China is deeply integrated and is a major
player in the World Economy, is the world’s
second-largest economic power. There has

Melting Ice, Rising Tensions: China’s Arctic Presence and Implications for the United States
Vol. VI, No. IV (Fall 2023) 63
been a significant surge in the PRC's
Outward Direct Investment (ODI) and
become the world's second-largest Outward
Direct Investment actor (Xinhua, 2022).
Under the BRI, China has established
Seventy-Five foreign Cooperation zones in
24 states and China has made significant
investments and has effectively generated
hundreds of thousands of employment
opportunities. China with its leading
economy, stands among the world's largest
investors (Almotairi, 2021). China is
advancing its interests in developing and
exploring natural resources, Arctic shipping
routes and supporting Infrastructure via
bilateral agreements and investments. As a
large portion of the region's natural
resources, such as gas and oil reserves, are
found inside the Exclusive Economic zones
(EEZ) and territories of the Arctic nations.
To obtain access to the Arctic's mineral and
natural resources, China has been making
huge investments and developing bilateral
relations with the Arctic nations. PRC and
the USA are the major players in the
emerging Arctic.
The USA considers the rise of China a
threat to its hegemony and declares China a
"Revisionist" power, that wants to change
the global order and is challenging its
power, influence, and interests (Dobell,
2018). So, the increased involvement of
China, an emerging global power, in the
Arctic Ocean region is considered a
challenge and an effort of China to override
the United States and the USA is willing to
counter any threat in the region as
mentioned in the US National Strategy for
the Arctic. The Arctic policy of the USA also
indicates the conservative approach of the
long-standing superpower, to the Arctic.
Additionally, it states that the PRC is
making attempts to gain influence in the
region which is leading towards the
growing strategic competition in the region.
Most of the Arctic States are collaborating
and solidifying relations with China by
signing different agreements, as they cannot
deny the economic incentives from China,
for example from 2012 to 2017 PRC invested
over two billion dollars in Greenland and 1.2
billion dollars in Iceland for the
development of transportation
infrastructure like Harbors and airports. Its
increased involvement, investments and
growing relationship with the Arctic nations
and the conservative approach of the United
States can disrupt relations between these
Arctic states and the USA. The relationship
between the PRC and the United States is
transforming and taking a new turn, with
the historical disparities worsening as new
regions emerge like the Arctic Ocean region,
exacerbating the Security dilemma. The
intensity of Tensions between both depends
on whether the USA would engage with the
PRC or would try to counter its growing
power and involvement in the region (Kiltz,
2023). If the United States continues to
pursue its conservative approach, it can lead
towards increased tensions between both,
which will ultimately lead towards the
instability of the region and disrupt
relations between the Arctic states and the
USA.
Conclusion
China’s preferred industries for Chinese
businesses are mentioned in the Guiding
Opinions on Further Guiding and
Regulating Overseas Investment, which
classifies China’s foreign investments into
three categories Encouraged, Restricted and
Prohibited. The encouraged industries are
research, manufacturing, exploration of
Natural resources, agriculture, and service
sectors etc while the prohibited industries
include the export of military core
equipment and technologies and
investments that are prohibited in the
international agreements. This shows

Virda Azam and Sajid Iqbal
64 Global Foreign Policies Review (GFPR)
China's interests are in alignment with the
policy goals mentioned in the PRC's Arctic
policy and indicates China's peaceful
approach to achieving these interests. PRC is
pursuing its Arctic policy in alignment with
international frameworks and laws and
keeping a low profile, focusing on pursuing
its economic interests. We can analyze above
mentioned PRC's activities and engagement
in the Arctic Ocean region through the lens
of Geo-economics, which focuses on how
the economic factors influence and shape
geopolitical outcomes. So, we can say PRC is
increasing its presence in the Arctic Ocean
Region to take complete benefit and
advantage from the key geographical region
for its economic objectives, not to override
the United States of America. However, the
USA considers the increased involvement of
the PRC in the Arctic Ocean region as a
threat to its hegemony and Global order and
its interests, as the PRC is the rising global
power that has the capability to override the
United States. Though the PRC's activities in
the region are not offensive, its rising status
in the world and its efforts for a prominent
role in the Arctic region have the potential to
threaten the interests of the USA in the
region.
As mentioned in the Arctic Policies of both
states, the United States of America
considers itself a Steward power in the
Arctic Ocean region, that is responsible for
managing the affairs of the region while on
the other hand, the PRC also aims at having
a stewardship role in the region. The USA in
the first pillar of its National Strategy on the
Arctic, which deals with Security argued
that they are committed to the protection of
its people, their territory, and allies, from the
protection of the national defence to the safe
Scientific and Commercial activities and
alleviating the threat of militarization or
unintended escalation. It argued that the
USA will maintain and advance its military
presence in the region to defend against the
Global military, power projection and
deterrence goals and to deter any kind of
aggressive action. The US national strategy
on the Arctic argues that with the
transformation of the region, the Arctic is
becoming more accessible and strategic
competition is intensifying, the United
States will maintain its leadership role in the
region. So, this contest for the significant
role in Arctic affairs has the potential to lead
towards the increased tensions between the
PRC and the USA.
The PRC is making huge investments in
the infrastructure development of the region
and signing various bilateral agreements
with the Arctic countries for the
development of ports, harbours, airports etc,
to make its access easy to the exploration of
the mineral and natural resources present in
the region and in the Arctic nations. It is
hard for the Arctic countries to decline the
offer of Chinese investments, especially in
the underdeveloped regions, this will lead
towards the increased involvement of the
PRC in the region which poses a significant
challenge to the economic interests of the
USA and its relations with the Arctic
Nations. If the United States continues to
pursue its conservative approach, it can lead
towards increased tensions between both,
which will ultimately lead towards the
instability of the region and disrupt
relations between the Arctic states and the
USA.

Melting Ice, Rising Tensions: China’s Arctic Presence and Implications for the United States
Vol. VI, No. IV (Fall 2023) 65
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